Tehran - Iran on Sunday exhibited its missiles and other military hardware at the annual parade marking the Iraqi invasion in 1980, which led to a devastating eight-year war.

Military parades and war games have increased in the face of perceived threats from the United States and Israel against the country's nuclear sites, after Tehran has rejected calls by world powers to suspend its uranium enrichment programme.

"Iran is not after violating other countries and rather in favour of having friendly and fair relations with the whole world," President Mahmoud Ahmadinejad said at the parade.

"But at the same time we are ready to defend our ideals and interests. If the enemies dared to attack Iranian boundaries then our armed forces would break their hands before even before pulling the trigger and make them severely regret their action," he warned.

The president planned to travel to New York Sunday to attend the United Nations General Assembly. He described Iran as a "big and influential power" in regional and global developments, which can provide all its defence requirements despite the financial sanctions.

"At the current juncture Iran is not in a position to show the slightest softness towards its bullying enemies," Ahmadinejad said, reiterating his unwillingness to compromise in the nuclear dispute.

At the parade, Iran displayed its Shahab missiles and Saeqeh fighter jets, touted as similar to the US F-5 and F-18 fighters.

The Shahab-3 missiles with a maximum range of 2,000 kilometres have caused international concern, especially in Israel, because they would be able to reach all parts of the Jewish state.

But Tehran insists that its missiles and other weapons are for defensive purposes only.(dpa)